The bill’s purpose is to encourage people to contribute to their own healthcare costs in a way that is consistent with supporting the public health system.
The Bill proposes the following three ways to help sustain and balance New Zealand’s health system when increasing healthcare costs are overstretching public resources:-
- Fringe Benefit Tax (FBT) is to be removed from health insurance. Removing FBT will act as an incentive for employers to include health insurance in salary packages. The proposed removal of FBT will align FBT treatment of health insurance with accident insurance under ACC.
- The SuperGold health insurance rebate on premiums will provide support for seniors who are 65 years of age and over to maintain their health insurance. The time when premiums escalate usually coincides with the time when income reduces. If it is more affordable for seniors to maintain their health insurance, they can have a greater choice of elective surgery and shorter waiting times. The proposed 25% premium rebate is subject to a maximum of $500 per annum.
- Parent category migrants will be required to have health insurance on arrival and to maintain it in New Zealand for 10 years. The health insurance must cover elective surgery.